In this subtitle, “sewer” means a sanitary sewer.

The construction, acquisition, replacement, or enlargement of, or the installation of a service connection to, a water main or sewer benefits each property that abuts on, is connected to, or is served by the water main or sewer.

To impose a benefit charge for the construction of a water supply or sewer system, the Commission shall classify each property that abuts on a street, road, lane, alley, right–of–way, or easement in which a water main or sewer line is to be laid as: agricultural; industrial or business; institutional; multi–unit business; multi–unit residential; residential subdivision; or small acreage. The classification of a property by the Commission is final, subject only to revision: at a hearing under § 25–204(a) of this subtitle; or by the Commission if the use of the property changes.

When construction begins or within 12 months after completion of a water supply or sewer project, the Commission shall: in accordance with a classification established under § 25–203 of this subtitle, impose a benefit charge on each property that abuts on the water main or sewer; and notify each property owner in writing of: the classification of the owner’s property; the benefit charge imposed on the property; and the time and place of a hearing to contest the imposition of the charge. The Commission may deliver the notice required under this subsection by: mailing the notice to the last known address of the property owner; giving the notice in person to an adult occupying the property; or if the property is vacant or unimproved, posting the notice on the property. For each class of property, the Commission shall impose a benefit charge for water supply or sewer construction, or both, that is based on: the approximate cost of construction as an integral part of the whole system; and the number of front feet abutting on the street, road, lane, alley, right–of–way, or easement in which the water main or sewer is placed; or for multi–unit classes, the number of units in or on the property that abut on the water main or sewer. In accordance with paragraph (1) of this subsection and subject to paragraph (3) of this subsection, in imposing a front foot benefit charge the Commission: for an irregularly shaped lot that abuts on a street, road, lane, alley, right–of–way, or easement in which there is or is being constructed a water main or sewer, shall use a front footage the Commission considers reasonable and fair; for all the lots in a block owned by the same property owner and appurtenant to a residence, may use a continuous front footage for all the lots regardless of the streets on which the lots face; for a lot with a front and rear on separate streets, may use a front footage on both the front and rear; and for a corner lot of less than 2 acres in the residential subdivision classification: may not use a front footage on more than one side unless the corner lot abuts on two parallel streets; and if the corner lot abuts on two parallel streets, shall use a front footage that is reasonable and fair, taking into consideration the front footage toward which the building on the lot would naturally face. The Commission may impose a front foot benefit charge on the full front footage for a lot described in paragraph (2) of this subsection even if a water main or sewer does not extend along the full length of a boundary. The benefit charge shall be: unless otherwise provided in this subtitle, uniform for each classification of property in the sanitary district for any 1 year; determined by the Commission as costs and conditions require; and imposed once a year to begin on the January 1 or July 1 after the date of its imposition and may not be increased in that year. Beginning when the Commission imposes a benefit charge for a property, the Commission shall require the property owner to pay the benefit charge annually for a period of years equal to the period of maturity of the bonds the proceeds of which financed the construction of the water main or sewer. If a property of the Housing Opportunities Commission of Montgomery County is subject to a benefit charge under this subtitle, the benefit charge shall be paid in the same manner as by a private property owner. Each benefit charge imposed under this subtitle is a lien against the property that continues until the benefit charge is paid and the account is extinguished in accordance with this subtitle.

The Commission may not impose a front foot benefit charge on: property owned by the State, a county, or a municipality; property in the sanitary district that is connected to or authorized by the Commission to be connected to a water or sewer system operated by: a municipality; or a water or sewer company under the jurisdiction of the Department of the Environment; property owned by a regularly organized volunteer fire department that is used for public purposes; or subject to paragraph (2) of this subsection, property classified as agricultural that is actually used for farming purposes, unless a connection is made to a water main or sewer running through or adjacent to the property. The Commission may impose a reasonable front foot benefit charge on property classified as agricultural, which may not exceed the charge for 300 feet of front footage. The Commission may suspend the imposition and collection of a front foot benefit charge: with respect to a sewer line, for property otherwise subject to a front foot benefit charge that the Commission determines cannot obtain service from the sewer pipe on which the benefit charge would be based; for construction of a water main if the owner of the property that is otherwise subject to the benefit charge is not permitted to connect to the water main because of a finding: by the Commission that there is no sewer and the extension of an improved sewer system is not reasonably feasible; and by a county health department that a septic system would not be approved for the disposal of the water for which the connection is requested; or if the property that is otherwise subject to the front foot benefit charge for a water main or sewer has a preexisting residential dwelling that is served by a well or septic system, until the property owner requests service from the water main or sewer. If a property is exempt from front foot benefit charges or if the Commission has suspended front foot benefit charges for a property and the property is no longer eligible for the exemption or suspension, the Commission shall: classify the property in accordance with § 25–203 of this subtitle; and impose a front foot benefit charge at a rate and for a period of time equal to that of property that was originally classified or for which the Commission imposed benefit charges in the year of the suspension. The Commission shall use money from front foot benefit charges imposed on property under paragraph (1) of this subsection to: amortize bonds issued to construct water mains and sewers for which benefit charges were imposed under this subtitle; or construct other water mains and sewers for which benefit charges are imposed.

This section applies only to a property owner: whose property does not abut a water main or sewer; and who has not previously paid a benefit charge for the construction of the water main or sewer. The Commission: shall allow a property owner to connect to a nonabutting water main or sewer; shall classify the property and impose a front foot benefit charge to be paid by the property owner at the rate and for the same number of years as though the property abutted on a water main or sewer constructed in the year in which the connection is made; when the connection is made, shall place the property owner in the same position as to all charges, rates, and benefits as if the property abutted on a newly constructed water main or sewer; if a water main or sewer abutting on the property is subsequently constructed, may require the property owner to connect to the abutting line and discontinue service from the nonabutting line; or while the property is in the same classification as when the nonabutting connection was made, shall allow the prior imposition of a front foot benefit charge to stand and may not impose a front foot benefit charge for the new abutting water main or sewer.

In this section, “cost of construction” includes the cost of connecting a water main or sewer to the Commission system. If a property owner applies for a water main or sewer in an area in which the Commission determines service is not economically feasible unless the applicant makes a substantial contribution to the cost of construction of the water main or sewer, the Commission may classify the applicant’s property together with adjacent or adjoining properties that could be readily served by the construction required by the applicant as a remote area. The Commission may construct the water main or sewer after: approving the application; receiving payment from the applicant of the contribution necessary for the cost of construction; and imposing the required front foot benefit charge. The Commission may contract with the applicant at the time of the contribution to refund part or all of the contribution from any front foot benefit charges imposed on the property for the water main or sewer subsequently constructed by the Commission and served through the lines of the applicant in the remote area. The Commission shall determine the proportion of the contribution to be refunded and the maximum time of repayment, not to exceed 10 years.

When the Commission acquires an existing water or sewer system other than a municipal system, the Commission may impose a front foot benefit charge less than the uniform front foot benefit charge required in § 25–204 of this subtitle if: the construction cost of the system has been added, wholly or partly, to the purchase price of the property that abuts on the system; and the addition of the construction cost is a factor in the cost of the system to the Commission.

A water or sewer connection benefit charge imposed by the Commission under this section is in addition to a benefit charge imposed under any other section of this subtitle. When a benefit charge or portion of a benefit charge for a water main or sewer connection is made payable on an installment basis as provided in § 25–304(b) of this title, the deferred amount and interest shall be paid by an annual benefit charge in an amount and for the period of years necessary to amortize the account. Property subject to a benefit charge imposed under this section is subject to the benefit charge until payments have amortized the charge, including accrued interest. The Commission shall allow a property owner subject to a benefit charge for the deferred portion of a connection benefit charge to extinguish the account by paying the principal and interest due up to the time of payment. If a federal, State, county, or other governmental unit or municipality acquires property for public use that is subject to a benefit charge under this section, the benefit charge shall be paid and extinguished as provided in § 25–212 of this subtitle. A benefit charge imposed under this section shall be collected as provided in § 25–214 of this subtitle. To implement this section, the Commission may: include in the sale of bonds the cost of making service connections that are paid on an installment basis; and use any funds obtained from the sale.

When the Commission replaces or enlarges a water main or sewer to provide increased water or sewer service capability for abutting or connected property because of a change in the use or zoning classification of the property, a benefit charge for the construction of the replacement or enlarged system shall be: imposed as provided in § 25–204 of this subtitle; collected as provided in § 25–214 of this subtitle; and redeemed as provided in § 25–211 of this subtitle. Any unpaid portion of the initial benefit charge imposed for the original construction of the water main or sewer shall be included in the new benefit charge as an incremental charge to the single resulting benefit charge for the enlarged system only for the remaining years of the initial benefit charge. The Commission may not impose an additional benefit charge under subsection (a) of this section for a property in the residential subdivision class that abuts on an enlarged water main or sewer and that is subject to, or was subject to and paid, a benefit charge for water main or sewer construction until the classification of the property is changed because of a change in use or zoning classification requested by the property owner.

For purposes of this section, the annual benefit charge for a property shall be calculated at a sum: equal to the base rate applied to the classification for the property as it is used, disregarding any allowance for excess; but not less than the base rate applied to property in the residential subdivision classification. At any time, a benefit charge may be extinguished or redeemed by payment to the Commission of a sum equal to: the annual benefit charge multiplied by the number of years yet to run on the bonds that financed the construction of the water main or sewer on which the benefit charge was based; and less the interest calculated at the rate of interest on the bonds that financed the construction of the water main or sewer on which the benefit charge is based. Notwithstanding subsection (a) of this section, if a benefit charge is paid and redeemed because the property is acquired by the State, a county, or other governmental unit under any law that requires redemption, the payment to the Commission: shall be the capitalized amount of the actual benefit charge; but may not be less than an amount calculated as if the property were in the small acreage classification, with the redemption amount calculated as provided in this section. On receiving a sum from the extinguishment or redemption of one or more front foot benefit charges, the Commission: shall purchase and cancel one or more bonds from the series of bonds issued for the construction that was the basis of the front foot benefit charge; or may invest or use the sum to: construct other water mains and sewers for which benefit charges are imposed; or amortize bonds issued for the construction of water mains and sewers for which front foot benefit charges are imposed under this subtitle. The Commission may make up a deficiency in the purchase of a bond or pay a premium from any available surplus funds. The extinguishment or redemption of a benefit charge is conditional until the last year of maturity of the bonds from which proceeds the water mains or sewers were constructed. If, after extinguishment or redemption, the use of the property changes to another classification that would yield a greater benefit charge than that used to calculate the sum to extinguish or redeem the benefit charge, the Commission may: reclassify the property; calculate a benefit charge to give credit for the sum paid for the extinguishment or redemption; and reimpose the benefit charge for the remaining number of years until the bonds mature.

Except as provided for the Housing Opportunities Commission of Montgomery County under § 25–204(d)(2) of this subtitle, when the State or a county or municipality, or a unit of the State or a county, acquires property for public use that is subject to a benefit charge imposed under this subtitle, the benefit charge shall be paid and extinguished by payment to the Commission of a sum calculated in accordance with § 25–211 of this subtitle. When property is acquired without eminent domain, the Commission shall be paid the amount necessary to extinguish the benefit charge before the deed evidencing the transfer may be recorded in the land records of the county in which the property is located. When property is acquired by eminent domain: the Commission shall be named a party to the eminent domain proceedings and the jury shall make a separate award to the Commission of the amount necessary to extinguish the benefit charge; or the condemning authority shall pay the Commission the amount necessary to extinguish the benefit charge at the same time the condemning authority pays the amount awarded to the property owner if: by oversight or mistake, the Commission is not named a party to the proceedings; or the jury’s inquisition does not specify a separate award for the amount necessary to pay the benefit charge. If the Housing Opportunities Commission of Montgomery County allows a benefit charge to become delinquent: by the first month of the next fiscal year, the Montgomery County Council shall authorize and appropriate sufficient funds to pay the delinquent benefit charge and all penalties and interest on the charge; and the Montgomery County Executive shall pay the appropriated funds to the Commission promptly.

This section applies to: an omission or mistake previously made by the Commission; or a judgment or decree previously rendered on a property if front foot benefit charge payments have not been made on the property. When the Commission discovers an omission or mistake or within a reasonable time after a court renders a judgment or decree, the Commission may impose a front foot benefit charge at a rate and in a classification that it could have imposed originally or that a court orders, including any increases applied to the project of which the property is a part, if: the Commission discovers that property subject to a front foot benefit charge: mistakenly has not had a front foot benefit charge imposed; has had the charge imposed but was listed in the wrong name; or has had the charge imposed under an incorrect description; or a property owner did not receive notice as required by § 25–204 of this subtitle; or the court set aside the service of notice by judgment or decree. The front foot benefit charge imposed under this section shall run for the period of years the benefit charge would have run if it had been imposed at the proper time or in the proper manner.

This section applies to the collection of benefit charges for the Commission by the directors of finance of Prince George’s County and Montgomery County or by other tax collecting authorities in those counties. Each year, for 30 days before the collection of taxes begins in Montgomery County and Prince George’s County, the Commission shall have access to the records of the treasury division in each county’s department or office of finance to inform each county: regarding which properties or property owners are subject to a benefit charge and the annual benefit charge imposed on the property; regarding each property on which the Commission has imposed a benefit charge that was not subject to State or county taxes; and of the total benefit charge imposed for all properties in the county. All laws relating to the collection of county taxes apply to the collection of a benefit charge. A benefit charge: for purposes of collection, shall be treated as a county tax; shall bear the same interest and penalties as a county tax; and shall be advertised with, and in the same manner as, a county tax. The director of finance shall collect a benefit charge in accordance with this section. The director of finance: shall refer a protest, objection, or complaint concerning a benefit charge to the Commission; and may not refund, change, or amend a benefit charge. A property redeemed from a county tax sale or a property sold by the county council of Montgomery County or Prince George’s County after a final tax sale may not be redeemed or sold except on payment of the benefit charge due on the property. A property subject to a delinquent benefit charge shall be sold for the delinquent benefit charge at the same time and in the same manner as property sold for delinquent county taxes. The director of finance shall: print on the tax bill: “To Sanitary Commission benefit charge $....”; provide a space on the tax bill for the interest or penalty; make the proper entries on each tax bill mailed; and collect the amount specified on the bill for the benefit charge with the State and county taxes. In Montgomery County, each property tax bill shall list separately any deferred water main or sewer connection benefit charges applicable to an assessed property. Beginning June 1, 2013, in Prince George’s County, each property tax bill shall contain a notice of the number of annual payments remaining on the assessed property for the front foot benefit charge. On or before the 10th day of each month, the director of finance shall pay the Commission the amount of the benefit charges collected by the director of finance through the last day of the preceding month. If the director of finance does not pay the amount due the Commission as provided in paragraph (1) of this subsection, the amount due shall bear a penalty of 1% per month. The director of finance is personally liable for failure to pay the amount due to the Commission. The county councils of Montgomery County and Prince George’s County shall require the bonds of its respective director of finance to be conditioned on payment to the Commission of the amount collected under this section. By December 1 of each year, the Commission shall pay Montgomery County and Prince George’s County a reasonable amount for the services of its respective director of finance. The payment provided for in paragraph (1) of this subsection shall be included as an item in the Commission’s operating budget.